Tax,
Business Law
Nov. 2, 2026
Puerto Rico's 4% corporate tax: A major opportunity for American entrepreneurs
Businesses can qualify for Puerto Rico's 4% corporate income tax rate by establishing eligible operations and complying with applicable federal and state tax and residency laws.
Mohan Ananda
Mohan Ananda is a California attorney, entrepreneur, author and family-office executive. He practiced corporate and intellectual-property law for approximately four decades and has founded and advised public and private companies. His writings address entrepreneurship, technology, wealth stewardship and multigenerational legacy planning.
Puerto Rico offers an extraordinary opportunity for American entrepreneurs seeking to establish or relocate qualifying businesses. Under Puerto Rico's Act 60 Incentives Code, eligible export-services companies may qualify for a corporate income tax rate of just 4%.
The most significant advantage is that qualifying Puerto Rico-source corporate income may be subject to this 4% Puerto Rico tax without an additional U.S. federal corporate income tax on the same income.
This...
For only $95 a month (the price of 2 article purchases)
Receive unlimited article access and full access to our archives,
Daily Appellate Report, award winning columns, and our
Verdicts and Settlements.
Or
$895, but save $100 when you subscribe today… Just $795 for the first year!
Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)
Already a subscriber?
Sign In